In today’s blog, we’ll continue our exploration of the key roles in a bid team, focusing on the finance manager, procurement manager, and contract manager. Each of these roles plays a vital part in ensuring the success of a bid. Understanding their responsibilities and how they interact can provide valuable insights for anyone involved in or considering a career in presales.
The Role of the Finance Manager
The finance manager, sometimes referred to as the financial architect or project controller, is a critical member of the bid team. This role requires a deep understanding of the company’s financial structure. The finance manager’s primary task is to ensure that cost estimates provided by the solution team are complete and in line with the agreed-upon guidelines.
Once these estimates are received, the finance manager assembles the financials to create a cost baseline that covers all aspects of the project. They also handle additional financial parameters required to develop an internal business case, typically presenting the total project cost and cash flow projections.
A key responsibility of the finance manager is conducting financial analysis. This involves assessing the profitability and feasibility of the bid by comparing internal and external benchmarks, which helps the team understand how their bid stacks up against the competition and aligns with the client’s financial requirements.
Managing financial risks is another crucial task for the finance manager. They identify potential risks, such as inflation or onboarding costs if the project team changes over time, and develop strategies to mitigate these risks. Ensuring compliance with internal and external financial regulations is also essential, as non-compliance can jeopardize the bid.
Finally, the finance manager reports on the financial aspects of the bid, often presenting financial data to both internal stakeholders and the client, ensuring transparency and understanding.
The Role of the Procurement Manager
The procurement manager is responsible for sourcing and managing suppliers essential to the bid. Once the solution team identifies the hardware or services needed for the project, the procurement manager researches potential suppliers, ensuring they meet the project’s quality, cost, and reliability standards.
They prepare and issue requests for quotations (RFQs) or proposals (RFPs) and evaluate offers. After selecting a supplier, the procurement manager handles negotiations, securing the best terms and ensuring all agreements comply with the project’s timeline and requirements.
Cost control is another important aspect of the procurement manager’s role. They work to stick to the budget while identifying cost-saving opportunities through supplier negotiations. Procurement managers also manage supplier relationships, ensuring quality standards are met and potential risks—such as price increases—are mitigated through strategic contracts.
Additionally, they report on procurement activities, presenting cost savings, supplier performance, and other relevant data to stakeholders.
The Role of the Contract Manager
The contract manager acts as a liaison between the client and the bid team, ensuring that all agreements are formalized and reflected accurately in the contract. Their primary responsibility is drafting, reviewing, and finalizing contracts that meet both the project requirements and legal standards.
Contract managers also handle compliance, ensuring that contracts adhere to relevant laws, regulations, and company policies. Throughout the project lifecycle, they monitor compliance to avoid any legal disputes later on.
Risk management is a crucial part of this role, as contract managers must identify potential contractual risks and suggest protective clauses to mitigate them. Once the contract is ready, the contract manager leads negotiations with clients and suppliers, ensuring terms are favorable for all parties to foster long-term cooperation.
They also provide training to the team on contract management best practices and communicate with stakeholders to keep everyone informed of contract status and any emerging issues.
Conclusion
We’ve now explored the roles of six key players in the bid team: sales lead, bid director, solution lead, finance manager, procurement manager, and contract manager. Each role is essential in its own right, and effective collaboration among these roles is crucial for a successful bid.
If you’re working in presales or considering a career in this field, understanding these roles can help you see the bigger picture of what makes a bid successful.
